National Consumer Credit Protection Act 2009

CHAPTER 3 - RESPONSIBLE LENDING CONDUCT  

PART 3-6A - MISCELLANEOUS RULES  

Division 2 - Representations  

SECTION 160C   " FINANCIAL COUNSELLOR " ETC.  

160C(1)    
A licensee must not, in providing or offering to provide a credit service to a consumer, use any of the following terms (either alone or in combination with other words or letters) in a representation to the consumer about the licensee, the service or the licensee ' s actions in providing the service:

(a) the phrase " financial counsellor " ;

(b) the phrase " financial counselling " ;

(c) another term (whether or not in English) that:

(i) is of similar import to a phrase mentioned in paragraph (a) or (b); and

(ii) is prescribed by the regulations.

Civil penalty: 5,000 penalty units.

Defences

160C(2)    

For the purposes of subsection (1), it is a defence if regulations made for the purposes of paragraph 110(1)(a) exempt the licensee from section 29 in relation to a credit activity because the licensee engages in the activity as part of a financial counselling service.

160C(3)    
For the purposes of subsection (1), it is a defence if:

(a) the licensee is providing, or offering to provide, the credit service on behalf of another person (the principal ); and

(b) the licensee is a representative of the principal; and

(c) regulations made for the purposes of paragraph 110(1)(a) exempt the principal from section 29 in relation to a credit activity because the principal engages in the activity as part of a financial counselling service; and

(d) the licensee ' s actions in providing or offering to provide the credit service are within the authority of the principal.

160C(4)    
For the purposes of subsection (1), it is a defence if the representation uses any of the terms in the negative (for example, a representation that the licensee is not a financial counsellor).